Religious leaders, food banks urge Utah lawmakers not to hike food sales tax

Community coalition opposes hike in Utah food tax

SALT LAKE CITY — Days before the start of Utah’s legislative session, representatives from religious groups and food banks voiced concern Thursday about a potential sales tax increase on food to help fill the budget gap.

The coalition sent a letter to Gov. Gary Herbert and members of the legislature opposing the potential hike, arguing that its restoration to previous levels would cost the average Utah family an extra $240 a year.

“Our main concern is for low and middle-income families and individuals who spend a larger portion of their income on food,” the letter stated.

Gina Cornia, executive director of Utahns Against Hunger, said that the hungry have enough to worry about without paying more for sustenance.

“Food is an essential part of our daily lives. We should not put that tax burden on the backs of the poor,” Cornia said.

According to a Deseret News/KSL-TV poll of 419 Utah residents conducted Jan.12-13, 58 percent would likely oppose an increase of the sales tax on food. The margin of error was plus or minus 5 percentage points. The poll was conducted by Dan Jones & Associates.

In 2006 and 2007, lawmakers passed reductions in the tax, lowering the rate from 4.75 percent to 1.75 percent.

State Rep. Kay McIff tried to restore it, but the Richfield Republican’s bill never made it out of the House.

The upcoming state budget shortfall is currently estimated at $700 million, which community advocates fear could give the tax increase new life.

But even though McIff already has a bill drafted, he is ambivalent about introducing it.

“I’m going to make that decision as we move along, going to monitor these numbers,” McIff said.

Addressing the fears of food tax opponents, McIff said his drafted bill would include targeted relief for low-income families.

Angie Williams, a spokeswoman for Herbert, said in an e-mail that the governor has received the coalition’s letter and does not support a sales tax increase on food.

“Governor Herbert does not support the imposition of any tax increases this legislative session. He firmly believes that imposing additional tax burdens is the wrong move at this time, when the state’s economy is beginning to show signs of recovery,” she said.

Calling the food tax “unconscionable,” the head of Hildegardee’s Food Pantry, Elizabeth Hunter, said her group is already pushed to the limit since the U.S. Department of Agriculture diverted commodities from her food kitchen to feed earthquake victims in Haiti.

LouAnne Stevenson, 53, who subsists on Social Security disability, worries that the tax increase could strain her limited monthly food budget.

“I just barely eke out toward the end of the month. I already rely on food banks,” said Stevenson, who is hypoglycemic and spends between $200 and $300 a month for food.